Businesses and individuals are increasingly seeking loans from banks, which are reporting record-high demand while rejecting only a small portion of applications.

Banks state that individuals have shown heightened interest compared to previous months or years, with increased financing needs for both home purchases and consumption during the last quarter of 2024.

Business loan demand was also high at the end of 2024, spanning all business categories and various credit usage purposes.

According to the Bank of Albania, which compiles financial reports, small and medium-sized enterprises (SMEs) were the ones seeking increased financing for investments and liquidity needs.

Lower interest rates, along with future economic perceptions, have influenced these groups to seek loans not only in the local currency (lek) but also in foreign currencies.

Figures indicate that loan performance remains positive, as the total disbursed portfolio reached 900 billion lek by the end of the year, with banks providing strong support, particularly for businesses in the tourism sector.